Just when you think you've heard it all --- there is more to hear. The Federal Government is suing financial institutions for selling bad paper.
The biggest offender - Countrywide is no longer in existence.
Sue Bank of America while you are at it for knowingly buying Countrywide's bad paper with taxpayer money. Sue Bank of America for failing to negotiate loan modifications or short sales in good faith. Those actions have hurt the American public more than selling a bunch of bad paper to unsuspecting investors.
As Paula points out in her excellent blog - the proceeds from these suits will not find its way to helping the innocent victims of the shoddy loans - ordinary citizens.
WANT A GOOD LAUGH?...Dozens of Financial Institutions Are Being Sued By The Federal Government!!!
The Federal Housing Finance Agency is seeking unspecified compensation, claiming that these institutions knowingly peddled shoddy deals without informing the investors of the questionable paper....
"Securities and Exchange Commission officials are trying to make it easier on themselves to hold more individuals responsible for wrongdoing during the financial crisis.
In a major shift from the agency's traditional enforcement strategy, the SEC could file more civil cases in which defendants are accused of negligence only, rather than harder-to-prove charges of intentional wrongdoing or recklessness, according to SEC officials.
In the past, the SEC sometimes persuaded individuals to agree to narrow negligence charges in order to settle the case, rather than fight the agency in court over more-serious allegations, according to defense lawyers."
This action comes after how many years of suffering and loss of income, jobs, homes and retirement savings of the average American???.....
This is outlandish, in that the fraud is now going on in the actions of the FHFA and the rest of those in government who came up with this lawsuit which does nothing to identify exactly who was responsible! ...nor does it intend to take any action of significance to make the people, who lost so much, whole in any way!
So, pardon me while I chuckle a little bit, no laugh at the folly of it all!
Just what does the Federal Government intend to do, really? NOTHING!
Right now there are Billions of dollars being literally thrown at "Green" companies that can't find their way in the dark-- or the light....failing companies that don't merit the money to try to survive, especially when the government knows they won't last!!
So, the money goes into a black hole---all the while the poor homeowner still suffers from the damage done to the housing market from the fraud perpetrated by huge financial institutions!!!---And the money that was set aside for the homeowner who was put at risk from all the bad loans that were given to people who could not afford a home???
Why, that money is still there--not having been spent, because no one knows how to use it to help out the suffering homeowners!!! No, the homeowners who were given the bad loans are long gone---those houses were the first to be foreclosed upon and the individuals who were given those bad loans have moved on--into complete and utter poverty, homeless-ness or even worse!!!
We are now on the 2nd and 3rd wave of defaults in the aftershock of this fraud--Now qualified homeowners, who were ok in the beginning, are starting to feel the effects of the massive mortgage fraud. They have lost all equity and in most cases are now underwater---no chance to sell their home if they need to; and no money if they do manage to sell it!That money won't be used either, in my opinion--it will probably just go back into the coffers of the banks even though it makes the bank bailout look even worse in the eyes of those who lost the most......
What do you think about this travesty??? I would love to hear what you think about the charade that is going on right now within our government.
**ALL INFORMATION AND CONTENT IN THIS BLOG IS ORIGINAL TO PAULA I. HATHAWAY
Paula I. Hathaway, Senior Vice President, Prudential Douglas Elliman
Southamtpon Village Real Estate Specialist since 1995; Also Specializes in North Sea, Noyac, Water Mill and Bridgehampton, New York
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